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This case is part of the Trade and Industry Department SME case series funded by the Hong Kong Special Administrative Region Trade and Industry Department SME Development Fund. In 2000, Robert Wang, Senior Partner of the Hong Kong law firm Robert WH Wang & Co, spearheaded the establishment of TrademarkLogo.com (TML). He believed that legal services, like other businesses, could exploit the opportunities afforded by the Internet. The trademark practice of the intellectual property (IP) department was a good candidate for an Internet venture; the process was straightforward and it required few discussions and meetings between the lawyers and the clients. Doing business via the Internet would also greatly reduce the amount of paperwork the firm needed to handle, thereby solving the IP department''s cost over-run problem. However, the bursting of the Internet bubble, coupled with worldwide economic woes, sent the business into a downturn in 2002. The dotcom''s appeal seemed to have disappeared along with the Internet hype; traffic on the website had slowed down, and the number of transactions had tumbled. In 2003, the government rolled out the new trade mark ordinance and rules that streamlined and simplified the trademark and service mark registration process. As part of the government''s electronic service delivery (ESD) initiatives, procedural and pricing information became readily available on the web and anyone could lodge a trademark registration application themselves. The role of an IP service provider was thus being undermined. As the new Manager, hired to turn things around, Poorna Mysoor was tasked with reviving the business and identifying opportunities for future growth. As she was preparing her proposal to Robert Wang, she wondered about TML''s competitive advantage over its competitors: (1) how could TML make use of the Internet to establish a distinctive strategic positioning?; (2) what should TML do to react to the government''s ESD initiative; and (3) how could TML create a strong enough value proposition for its customers and suppliers?